NYSE$OLN

Olin Corp · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Announced second quarter 2023 results, reporting a net income of $146.9 million and adjusted EBITDA of $351.1 million.

Olin Corporation reported a net income of $146.9 million, or $1.13 per diluted share, for the second quarter of 2023. Adjusted EBITDA for the quarter was $351.1 million. The company expects full year adjusted EBITDA to be in the range of $1.4 billion.

  • Second quarter 2023 net income was $146.9 million, or $1.13 per diluted share.
  • Adjusted EBITDA for the second quarter 2023 was $351.1 million.
  • Share repurchases totaled $186.9 million in the second quarter 2023.
  • The company expects 2023 adjusted EBITDA to be in the $1.4 billion range.

Headline financials

Total Revenue

$1.7B

Previous: $2.62B-34.9%
EPS (adj)

$1.13

Previous: $2.76-59.1%
Capital Expenditures

-$129M

Previous: -$104M-24.0%
Free Cash Flow

$15.9M

Previous: $318M-95.0%
Net Income

$145M

Previous: $422M-65.7%
Operating Income

$217M

Previous: $565M-61.7%
Gross Profit

$310M

Previous: $665M-53.3%
Cash & Equivalents

$161M

Previous: $305M-47.1%
Total Assets

$7.95B

Previous: $8.68B-8.3%
Stock-Based Comp

$4.7M

Previous: $3.2M+46.9%

Revenue & EPS history

Olin · Revenue · Quarterly

$1.7B

Q2 2023-34.9%vs Q2 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Olin · $1.34B total across 2 segments · Q2 2023

  • Chlor Alkali Products and Vinyls
    $1B-28.6%
  • Epoxy
    $334M-56.8%

Forward guidance

Olin expects third quarter 2023 results from its Chemical businesses to be lower than second quarter 2023 levels due to the difficult global economic environment and continued operating issues with the vinyl chloride monomer Freeport, Texas facility. Winchester business third quarter 2023 results are expected to increase sequentially from second quarter 2023 as international and domestic military growth is anticipated. Overall, Olin expects third quarter 2023 adjusted EBITDA to be approximately 10% lower than second quarter 2023 levels. Olin expects full year adjusted EBITDA to be in the range of $1.4 billion.

Tailwinds

  • Winchester business third quarter 2023 results are expected to increase sequentially from second quarter 2023.
  • International and domestic military growth is anticipated.
  • Olin expects full year adjusted EBITDA to be in the range of $1.4 billion.
  • Prioritizing share repurchases from excess cash flow
  • Maintaining commercial discipline and “value-first” approach

Headwinds

  • Difficult global economic environment
  • Continued operating issues with the vinyl chloride monomer Freeport, Texas facility
  • Third quarter 2023 results from Chemical businesses are expected to be lower than second quarter 2023 levels
  • Olin’s third quarter 2023 adjusted EBITDA is expected to be approximately 10% lower than second quarter 2023 levels.
  • Challenging demand environment

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.8%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+3.7%

Avg return

30 days after

43%

29 / 67 earnings

Positive

+12.1%

Q4 2016

Best reaction

-15.7%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.4%+6.2%-8.2%
Q4 2025-6.8%+13.9%+13.6%
Q3 2025-12.5%-13.8%-13.5%
Q1 2025+2.4%-5.8%-10.3%
Q3 2024-8.1%-9.3%-4.9%
Q2 2024-5.6%-4.0%-5.9%
Q1 2024+0.8%-1.5%+2.5%
Q4 2023+8.6%+5.3%+3.5%
Q3 2023-6.3%-4.9%+5.6%
Q2 2023+4.4%+4.2%+4.5%
Q1 2023+4.3%+2.3%-4.8%
Q4 2022+9.1%+12.5%+4.0%
Q3 2022+5.8%+7.0%+17.0%
Q2 2022+5.7%+4.2%+14.2%
Q1 2022+9.9%+18.7%+28.0%
Q4 2021-3.6%+3.3%+2.8%
Q3 2021+8.3%+11.5%+15.7%
Q2 2021+4.6%+6.4%+8.3%
Q1 2021+1.3%+3.5%+18.4%
Q4 2020+0.3%+11.7%+29.7%
Q3 2020+10.4%+11.3%+24.3%
Q2 2020-1.0%-1.4%+5.6%
Q1 2020-12.3%-21.3%-21.0%
Q4 2019+9.2%+6.6%-7.0%
Q3 2019-5.1%+0.0%-9.1%
Q2 2019-7.5%-12.0%-17.7%
Q1 2019-6.0%-5.0%-9.7%
Q4 2018+8.1%+1.5%+0.5%
Q3 2018-2.3%+6.2%+6.2%
Q2 2018+2.4%+4.3%+7.1%
Q1 2018+2.0%+4.8%+7.1%
Q4 2017-6.1%-13.7%-8.4%
Q3 2017+3.2%+0.2%-0.2%
Q2 2017-0.2%+3.4%+6.0%
Q1 2017-5.0%-8.1%-7.9%
Q4 2016+12.1%+17.9%+21.1%
Q3 2016-0.1%-3.0%+18.4%
Q2 2016-1.0%-0.3%+3.5%
Q1 2016+1.7%
Q4 2015-15.7%
Q3 2015+3.9%
Q2 2015-0.9%
Q1 2015-0.3%
Q4 2014+5.1%
Q3 2014-7.2%
Q2 2014-1.5%
Q1 2014-3.2%
Q4 2013-4.0%
Q3 2013+2.0%
Q2 2013-1.8%
Q1 2013-4.9%
Q4 2012-3.0%
Q3 2012-2.8%
Q2 2012-9.6%
Q1 2012-1.0%
Q4 2011-0.2%
Q4 2008-0.2%
Q3 2011-11.8%
Q2 2011-1.7%
Q1 2011-5.4%
Q1 2010-5.4%
Q4 2010+0.2%
Q3 2010-5.6%
Q3 2009-5.6%
Q4 2009+1.5%
Q2 2010+1.5%
Q2 2009+1.5%

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